Business News Round Up (16/07/2021)
‘Brand Britain’ boost still evident for North West businesses despite Brexit difficulties
New research from leading business and financial adviser Grant Thornton UK LLP finds more than two-thirds (69%) of mid-market businesses in the North West believe ‘Brand Britain’ is advantageous when selling overseas. 63% of respondents feel that Brexit has in fact strengthened ‘Brand Britain’. Despite this, more than half (51%) report that the decision to leave the EU has negatively impacted trading overall. The majority (65%) reported that they were well prepared for any immediate negative effects following the end of the transition period. More than half (60%) of North West businesses have already optimised their supply chains. The biggest challenges for mid-market businesses post-Brexit were identified as: trade compliance issues (49%), immigration and people mobility challenges (40%),Uncertainty over product labelling (39%), loss of talent (36%), setting up new overseas operations (30%), and VAT compliance issues (30%).
UK companies hire at record pace as economy reopens
Britain’s unemployment is falling as the nation’s Covid-hit economy reopens — but vacancies are soaring as businesses struggle to recruit sufficient staff, official data showed Thursday. The unemployment rate dipped to 4.8% in the three months to the end of May, the Office for National Statistics said in a statement. That was down from 5.0% in the three months to February, the ONS added. Unemployment remains 0.9 percentage points higher than its pre-pandemic level. But the labour market has picked up since March as a result of the economy’s phased reopening, with England set to fully exit lockdown next Monday. The ONS added that the number of employees on payrolls soared by a record 356,000 in June.
Scottish economy shrank almost 10% last year, finds Holyrood watchdog
Scotland’s economy shrank by almost 10 per cent last year because of the lockdown forced on the country by the Covid pandemic, Holyrood’s budget watchdog said. The Scottish Fiscal Commission said the dramatic and unexpected effect of the outbreak had led to its largest ever forecasting error. In February 2020, the Commission forecast the Scottish economy would grow by 1% that year, but instead it fell by 9.6%. The watchdog noted the emergence of Covid in China was a potential risk to global trade but did not foresee the shuttering of large parts of the economy just weeks later. In a forecast evaluation report, the Commission said it also over-estimated Scottish Government income from two devolved taxes – Land and Buildings Transaction tax and Scottish Landfill Tax – by £134m and under-estimated social security spending by £100m.
North West industrial property market ‘hits new heights’ – report
The North West industrial property market continued to reach new heights during the first half of 2021, according to a new report, with the value of transactions having tripled and occupier take-up almost doubling the same period last year. B8 Real Estate’s latest market report shows that there were 49 investment transactions totalling £648m between January and June, compared to 25 deals totalling £194m in H1 2020. Occupational take-up of larger industrial and distribution units – those of more than 90,000 sq ft – reached a record 3.3 million sq ft, up from 2.3 million sq ft, with a further 3.7 million sq ft under offer. Demand from occupiers has continued to strengthen during the year, driven by the growth in e-commerce and companies increasing stock levels to avoid disruption to supplies or reshoring their manufacturing operations. However, the report found that the supply is restricted.
https://www.insidermedia.com/news/north-west/nw-industrial-property-market-hits-new-heights-report